An Investor Earned a Holding Period Return Equal to 10

question 73

Multiple Choice

An investor earned a holding period return equal to 10 percent on a stock that she purchased for $27.50.During the time she held the stock,the company paid a $2 dividend.For what price did the investor sell the stock?

• A) $26.75
• B) $26.25
• C) $30.25
• D) $29.50
• E) $28.25

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Definitions:

Economic Precepts

Basic principles or theories that guide the analysis and management of economic activities.

Shareholder Model

A theory of corporate governance focusing on the interests of shareholders, prioritizing financial returns over broader social or ethical considerations.

Stakeholder Model

A theory of organizational management and business ethics that addresses morals and values in managing an organization, centering on the interests of all stakeholders.

Corporate Governance

The system by which companies are directed and controlled, involving the mechanisms, processes, and relations used by various parties to control and to operate corporations.